For Starters
When asked to name a way to make money that works, "Invest" is a common answer. Where does this answer go wrong? Well, most of the people who answered have very little or no money saved up. I look at the beginning of building wealth in a different way. "A penny saved is a penny earned" is a saying that almost everyone knows, but almost no one follows. In today's culture, spending money is definitely easier than saving it. The average American sees 247 commercials in one day. Less than 5% of Americans have no debt and at least $3000 in savings. It's no wonder that most people have trouble saving money or understanding what it means to build wealth. Commercials on TV and radio, ads in newspapers and magazines, billboards, signs, posters, and even conversations are constantly bombarding our minds. No matter how they do it, the main goal is always the same: to get your money and make it theirs.
b>The Mystery Revealed/b>br>
So, with all those numbers and ads, how is it possible to get rich? Well, you're already way ahead of the game. By reading this article, you're giving yourself access to ideas and concepts that could help you get started, which is more than most people can say. Building wealth starts with a single brick, just like building a house. You have to start where you are and keep adding to what you have.
Why not invest right away in stocks, mutual funds, or other things? Whether you plan for it or not, life will keep going on. So get ready for it. You must start with a "emergency savings," which is a lump sum of money in your savings account. $1000 is a good number for this. Your savings MUST come first, before anything else. If you don't do these things, your savings won't grow (or it may not happen at all). This extra money will cushion any financial falls that can and will happen while you pay off other debts that are stopping you from getting rich. You should know, though, that this money is the most important, but you can't touch it - it's only for emergencies. By doing these two things:
- Putting away $1,000 in savings and then 2) working hard to get rid of extra debts will make it much easier for you to build wealth.
Making it Happen
You have to do something right away if you want to save money. Get a savings account first. Find out what the interest rate is if you have one. Many of them have between 0.25 and 1 percent (WHOOP!). Remember that you're not trying to make all of your money in interest right now, but since the money is going to sit, you might as well look around. It is possible to get a rate of interest between 3 and 5 percent. A money market account is another way to get a good rate, but there are sometimes restrictions, like fees for early withdrawals and having to keep a certain amount in the account at all times. Second, as I already said, take your savings out first when you get paid. You also have to make a change that hurts. To get that first $1,000, you might have to give up some things. This could mean not going out to eat or giving up an expensive hobby for a while. You could also try switching phone companies or getting a smaller cable package. The next idea is horrible, but it's for a good cause: Don't pay more than the minimum on your credit card (JUST FOR NOW). But you get the point. Cut a little here and a little there. Now, put together all the numbers you cut out. I This is how much you will put into your savings account every week until you have $1000. When the average person thinks they are getting ahead or at least staying even, something bad happens and everything goes downhill. This is the hardest part of getting rich, and it's only the start (the first brick). But if you don't save this extra money, you'll keep treading water until you drown, so stop thinking about it and start doing something about it today.
The next step is to quickly pay off your debts. "Beating Debt with a Stick," an article that goes into more detail about this, can be found at a href="http://www.cleancreditonline.com/beating debt.html">http://www.cleancreditonline.com/beating debt.html/a>.
